BOARD01632

• Board Meeting Date: 9/13/2004
• Description: ISF Section - Proposed Water Right Acquisition - Elkhead Reservoir Enlargement
• Board Meetings - Doc Type: Memo

DRAFT 9-1-04
conveyance to CWCB ofa 20/47th interest in the River District's ownership of the storage
capacity of the Elkhead Reservoir Enlargement and in certain water rights owned by the River
District decreed to fill the Elkhead Reservoir Enlargement; and provides for subleasing the
Short-Term Water Supply Lease to the CWCB. The Acquisition Agreement described in this
paragraph is incorporated herein by reference and made a part hereof; and

11. WHEREAS, Reclamation intends to execute a Grant Agreement to transfer funds
(up to $2,795,032.00) from Reclamation to the River District to fund (cost share) a portion of the
Recovery Program's Pro-Rata share of the Reservoir Enlargement Cost of Construction; and

12. WHEREAS, the National Environmental Policy Act (NEP A) and ESA
compliance actions required for the construction of the Elkhead Reservoir Enlargement have
been completed and resulted in a Record of Decision issued by the U.S. Army Corps of
Engineers, dated _' and a Section 7 Biological Opinion determining that no jeopardy will
occur has been issued by the Service, dated _' The NEP A and ESA compliance required for
the federal agencies to execute this Reservoir Enlargement Agreement is covered under the
Elkhead Reservoir Enlargement NEP A and ESA documents described above; and

13. WHEREAS, Public Law 106-392, enacted on October 30,2000, authorizes
Reclamation to, among other things, provide cost sharing for capital construction projects under
the Recovery Program. Public Law 106-392 also authorizes Reclamation to use power revenues
to provide up to $4 million per year to fund recovery monitoring and research and operation and
maintenance of capital project features associated with the Recovery Program through the year
2011. Furthermore the law provides for monitoring, operation, and maintenance funding beyond
2011.

NOW, THEREFORE, in consideration of the mutual and dependent covenants herein, the
parties hereto agree as follows:

I. Definitions - as used in this Reservoir Enlargement Agreement.

Amended and Restated Agreement - is that Amended and Restated Agreement between
the Yampa Participants, the River District, and the City of Craig dated

Citv of Craig ("Craig'') - is a home-rule municipal corporation organized under the laws
of the State of Colorado and located in Moffat County, Colorado.

Elkhead Dam and Reservoir ("Reservoir'') - consists of the existing dam and the existing
water storage space located behind the Dam. The existing Reservoir has a design
capacity of 13,137 acre-feet and the dam is located in Section 16, Township 7 North,
Range 89 West, 6th Principal Meridian, Moffat County, Colorado.

Elkhead Reservoir Enlargement ("Reservoir Enlargement'') - consists of the Dam

C:\Documents and Settings\amj.DWR\Local Settings\Temporary In~~~ir Enlargement Agreement 9.1-04 clean.doc

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